Board Diversity And Bank Risk-taking

Commercial banks have played an important role in the market economy.They are directly involved in the activities of market economy and are one of the hubs of modern society and economy.The research on commercial banks' risk-taking is currently focused on the impact of external pressures such as monetary policy,economic growth,and capital supervision on banks' risk-taking;the corporate governance level is mainly focused on the ratio of the largest shareholder,the proportion of independent directors,and senior management.In terms of salary,etc.,seldom involves the influence of board diversity on bank risk-taking.As the core of corporate governance,the board of directors is the key to bank decision-making and supervision.Therefore,from the perspective of board diversity,this paper studies whether board diversity can significantly reduce banks' risk-taking.This paper uses the unbalanced panel data of 19 large commercial banks in China from 2004 to 2016 as research samples to study the influence of board diversity on bank risk-taking.Based on this,this paper also analyzes the heterogeneity of board of directors and the risk of banks.Conduction mechanism for analysis.The research results show that:First,the board diversity is significantly positively related to the bank's risk-taking.That is,the higher the board diversity,the lower the bank's risk-taking.Second,the board's age diversity and educational level diversity are significantly negatively correlated with bank's risk-taking.Board's educational background diversity,tenure diversity,and bank's risk-taking are significantly positively correlated.The relationship between board's gender diversity,part-time diversity and bank risk taking is not significant.That is,the board of directors composed of different ages and education levels will reduce the risk-taking of the bank to a certain extent.The composition of the board of directors with different education backgrounds and term will increase the bank's risk-taking to a certain extent.The board's gender and part-time number will not affect risk-taking.Third,the age diversity of the board of directors can affect bank risk-taking by affecting the total loan amount.Age diversity can increase the total amount of loans issued by banks.The total loan amount is significantly negatively related to bank risk-taking.The total loan amount completely mediates age diversity and bank risk-taking.In general,the results of this study show that not all diversity will reduce bank risk-taking,and the effects of different diversity should be considered separately when the board is formed.